China and the Logistics of Everything

China’s densely populated cities are making it easier for companies to deliver everything from food takeout to large appliances quickly and at cheaper rates than other parts of the world. China boasts 156 cities with over 1 million people, compared with just 10 in the United States. This density has enabled Chinese companies to build an elaborate supply chain network that ships more than 140 million parcels a day and makes China the world’s largest eCommerce market, according to Ronald Keung of Goldman Sachs Research. Keung notes that the nation’s online retail segment is projected to reach $2 trillion by 2020.

The strong logistics supply chain is currently the key driver of much higher online penetration in China that will lead the rest of the world.